Gear Energy Ltd T.GXE

Another problem with Newco

[lovehockey]

At the IPO it will be heavily shorted. Everyone and their dog will know that $2 share price is not possible in the current situation and it will attract every serious shortseller. The stock price will tank like you rarely see. It simply will not make any sense having that stock at IPO. Even if you want NewCo shares it will make more sense to buy it down the road, definitely not now. Everyone who knows the market understands all of this, no way someone will choose NewCo shares over guaranteed 60 cents per GXE share. As a result it is a guaranteed 30 cents per share and a stock that will tank like you have never seen, possibly from 2 dollars to 15 cents.

[ztransforms173]

- SHORTING is NOT POSSIBLE for a STOCK like GXE - WHO is going you TO LEND YOU their GXE shares ? - then there is the ADDED PROBLEM of OBTAINING the 'expected' $ 0.3035 per GXE share CASH DISTRIBUTION from the SHORT SELLER - 'PROBABLE' (?) LARGE SCALE SELLING PRESSURE [those DIVIDEND-SEEKING players who WANT OUT ?} when Lotus Creek STARTS TRADING is the MAJOR TRADING RISK